Skip to content
Search

Latest Stories

Air India disinvestment should improve competition: IATA Official

AS the Indian government plans to invite bids for Air India during the next few months, a top official of global airlines body IATA said on Wednesday (11) that the disinvestment of the national carrier should be done in a fair and transparent manner and in a way that it improves competition within the aviation sector of the country.

Moreover, the official said that the Jet Airways' bankruptcy - which happened in April this year - does raise questions on the sustainability of the Indian aviation sector.


”The only thing that we can say about privatisation of Air India is that if it has to be done in a way that would probably maintain or improve the competitive conditions of the market,” Alexandre de Juniac, Director General, International Air Transport Association (IATA) said on Wednesday.

"And, also, it should allow the government to devote some of the resources, which it was giving to Air India, to the wider aviation sector probably," he told reporters.

According to the last month's data provided by aviation regulator DGCA, low-cost carrier IndiGo carried around 47 per cent of domestic passenger traffic. SpiceJet and Air India were at number two and three with around 15 per cent and 13 per cent share, respectively.

On December 5, Civil Aviation Minister Hardeep Singh Puri told the Parliament that the preparation of Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI) for Air India disinvestment is in process.

Juniac told reporters in Geneva: “It has to be done for Air India in a way that will improve the competition in the country, that will not harm one airline against another, or the national airline against the foreign airlines. It has to be fair.”

He said the disinvestment process should be on the principles of “equal, fair and transparent”.

"We generally do not have a position in principle, to say that whether or not it is good to have nationalised airline or a flag carrier that is owned by state. There is no magic rule that we would advocate for,” he said.

Air India's net loss in 2018-19 was around Rs 85.56 billion.

"It is a privatisation process. It has to be attractive for the investors. They will judge the financial status of the company, potential, startegic fit...it is normal privatisation process where we have nothing to say,” he noted.

In April this year, Jet Airways - which has been an IATA member - shut down its operations as it ran out of funds.

When asked if Jet Airways' bankruptcy raises question on the sustainability of the Indian aviation market, he replied, ”of course, it raises a question. When you have a big player going to bankruptcy, it raises questions.”

"The operating costs for airlines in India are too high. So, you have enormous pressure on your P&L (profit and loss) due to operating costs that are too high mainly due to infrastructure charges, fuel taxes, excise, etc,” he added.

"Strong competition and high costs make life difficult for the operators,” Juniac said.

Currently, in India, the IATA has Vistara, IndiGo and SpiceJet as its members. Overall, across the world, the IATA has more than 80 per cent of airlines as its members.

More For You

Rosneft in early talks to sell India refinery stake to Reliance

Reliance Industries chairman Mukesh Ambani (Photo: Getty Images)

Rosneft in early talks to sell India refinery stake to Reliance

RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.

The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less
Asda suffers nearly £600m loss as debt and IT costs surge

Asda co-ownerMohsin Issa. (Photo: Asda)

Asda suffers nearly £600m loss as debt and IT costs surge

ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.

The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.

Keep ReadingShow less